Question: solve prob3 and 4 Problem 3 A factory that you are managing has an hourly production process that can be represented by the following Cobb-Douglas

solve prob3 and 4

solve prob3 and 4 Problem 3 A factory that you are managing

Problem 3 A factory that you are managing has an hourly production process that can be represented by the following Cobb-Douglas production function: Q = K 0.50L 0 25. The price of one unit of capital per hour is $10 and the price of one unit of labour per hour is $10. You have been instructed not incur in hourly costs that exceed $800 per hour. Find the optimal amount of labour and capital that you will be using, and compute the amount of output that the factory will be producing per hour Problem 4 A factory that you are managing has an hourly production process that can be represented by the following Cobb-Douglas production function: Q - K^0.25L 0.25. The price of one unit of capital per hour is $10 and the price of one unit of labour per hour is $10. Find the optimal amount of labour and capital that you will be using to produce 100 units of output, and compute the total cost of producing 10 units of output

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